Jyske Bank Interim Financial Report - First nine months of 2017


  • Pre-tax profit: DKK 3,025m (Q1 - Q3 2016: DKK 2,403m) corresponding to a return of 12.6% p.a. on average equity (Q1 - Q3 2016: 10.6% p.a.)
  • Post-tax profit: DKK 2,363m (Q1 - Q3 2016: DKK 1,914m) corresponding to a return of 9.8% p.a. on average equity (Q1 - Q3 2016: 8.4% p.a.)
  • Core profit: DKK 2,433m (Q1 - Q3 2016: DKK 2,202m) 
  • Underlying core expenses increased by 1%
  • Reversed loan impairment charges and provisions for guarantees, etc. under core earnings: DKK 314m (Q1 - Q3 2016: an expense of DKK 144m)
  • The implementation of IFRS 9 is expected to increase the balance of impairment charges by an amount in the range of DKK 1,000m-1,500m. The effect on capital from this will be fully recognised in the financial statements and solvency for the first quarter of 2018
  • Capital ratio: 19.8%, of which the Common Equity Tier 1 capital ratio was 16.2% (end of 2016: 18.3% and 16.5%)
  • It is the intention of the Supervisory Board that, at the Annual General Meeting in March 2018, a motion be made for the distribution of ordinary dividend of DKK 5.85 per share for the financial year 2017. The ordinary dividend for 2016 was DKK 5.25 per share
  • Jyske Bank now offers Apple Pay to clients with VISA cards

Comments by management

In connection with the publication of the interim financial report for the first nine months of 2017, Anders Dam, CEO and Managing Director, states:

'Jyske Bank achieved a profit of DKK 2,363m for the first nine months of 2017, corresponding to a return of 9.8% p.a. on equity. For the third quarter, the return was 9.2%. This profit was primarily achieved through rising fees and rising bank mortgage loans, which formed the basis for a stable net interest income. In addition, impairment charges were reversed and investment portfolio earnings increased.

The sale of new home loans continues at a favourable pace and amounts now to about DKK 93bn. The development is supported by the recent initiative offering the same home loan prices both to clients solely using Jyske Bank and clients using Jyske Bank as their supplementary banker. So far, this has led to a 30-40% increase in property assessments ordered each day. Therefore, Jyske Bank expects that it will be able to maintain a higher growth rate than the market in both 2017 and 2018.

The credit quality is still improving, particularly in respect of corporate clients, and therefore in 2017 reversals totalling DKK 314m have been recognised, of which DKK 151m relate to agricultural clients. The expected effect in the range of DKK 1,000m-1,500m from IFRS 9 on the balance of impairment charges will be recognised fully in the financial statements as well as solvency in the first quarter of 2018.

As announced yesterday, Jyske Bank's clients with VISA cards will now be offered Apple Pay. Jyske Bank has received many inquiries from clients since Apple Pay was launched in several other countries, and therefore we expect that this mobile payments solution will soon become popular and be used extensively by our clients. The development in the mobile payments and card area is very fast these years. Jyske Bank's clients primarily use VISA/Dankort and VISA Debit. We anticipate that the latter will have many extra functionalities added over the coming years', concludes Anders Dam.